Company News »

RAIT Financial Trust Prices a $223.0 Million Non-Recourse, Floating-Rate CMBS Transaction

Business Wire
Share on StockTwits
Published on

RAIT Financial Trust (NYSE:RAS) (“RAIT”) announced today the pricing of a non-recourse, floating-rate CMBS transaction collateralized by floating rate commercial real estate first lien mortgage loans, all of which were originated by subsidiaries of RAIT. The transaction involves the issuance and sale by a RAIT subsidiary of investment grade notes totaling approximately $181.2 million with a weighted average cost of LIBOR plus 1.84%, which provides an advance rate to the RAIT subsidiary of approximately 81.2%. RAIT affiliates will retain all of the below investment grade and un-rated subordinated interests totaling approximately $41.8 million. RAIT expects the transaction to close on May 22, 2015, subject to customary closing conditions. RAIT is entering into the transaction to obtain non-recourse, matched-term financing for the loans serving as collateral. RAIT expects to earn a high teens return on its retained interest in the affiliated issuing entity, inclusive of fees less transaction expenses, assuming all of the underlying loans are repaid at their stated maturity and not prepaid, in default or sold. Citigroup Global Markets Inc. acted as sole structuring agent. Citigroup Global Markets Inc., UBS Securities LLC and Barclays Capital Inc. acted as co-lead and joint book-running managers.

The bonds were offered inside the United States to (1) qualified institutional buyers within the meaning of Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and (2) to other institutional investors that are accredited investors within the meaning of rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act, and outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act. The bonds have not been registered under the Securities Act or applicable state or foreign securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy the bonds.

About RAIT Financial Trust

RAIT Financial Trust is an internally-managed real estate investment trust that provides debt financing options to owners of commercial real estate and invests directly into commercial real estate properties located throughout the United States. In addition, RAIT is an asset and property manager of real estate-related assets. For more information, please visit www.rait.com or call Investor Relations at 215.243.9000.

Share on StockTwits